Number of companies going bust in Sweden expected to decrease this year on the back of economic recovery.

• Service sector to boost Swedish economy
• Stronger labour market boosts Swedish finances

The number of business bankruptcies in Sweden declined by 17 percent during the first quarter, the credit information agency UC said in a report. In the month of March the reduction was 15 percent.

“The figures for March continue in the positive direction shown in 2009, largely thanks to the stabilisation of the economy”, Roland Sigbladh, Marketing Director at UC, said in a statement.

Quarterly figures are now in line with the average for the 2000s. The agency estimates that bankruptcies overall will fall by ten percent this year.

“Although we are still in a recession of historic dimensions, international economic activity is slowly recovering. This may of course also impact on Swedish industry, which also has had a better position than most European countries. Many entrepreneurs are still struggling with profitability, but everything suggests that the crisis is over for Swedish companies this time”, said Roland Sigbladh.

The business sentiment for Sweden’s large enterprises has improved notably since last autumn, the statistics office said month. The improvement is most prominent among industries that suffered the most from the downturn.

The decline of companies going bust is most clear in trade and private. It also looks as if the manufacturing sector is recovering after some tough years.

“Manufacturing industry has suffered worse than the service sector in the worldwide recession. Households have high savings and this, along with reduced income taxes and low interest rates, has primarily benefited the service sector. But now the situation looks much brighter for the manufacturing sector too, even if it is a bit slow in the construction industry at the moment", says Roland Sigbladh.